The Reduction of Risk Resulting from Combining Firms with Differing

question 74

Multiple Choice

The reduction of risk resulting from combining firms with differing seasonal or cyclical patterns of sales or earnings is a key benefit of ________.

• A) congeneric merger
• B) conglomerate merger
• C) horizontal merger
• D) vertical merger

---

Definitions:

Nature

The inherent qualities or characteristics of a person or thing; frequently contrasted with nurture, or environmental influences.

Nurture

The influence of external factors like environment, education, and social experience on the development of an individual.

Operant Conditioning

A behavioral modification approach where the vigor of an activity is changed by applying reinforcements or punishments.

Social Learning Theory

A theory that proposes people can learn new behaviors and norms through observational learning, by watching and imitating others.